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The Natural Rate Hypothesis Asserts That

Question 180

Multiple Choice

The natural rate hypothesis asserts that


A) when prices change the inflation rate changes temporarily and then returns to its natural rate.
B) changes in the unemployment rate are natural and long-lasting.
C) price changes occur at a natural rate, near a 6 percent average inflation rate.
D) changes in the unemployment rate from changes in the inflation rate are temporary.
E) changes in the natural unemployment rate are only temporary.

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